Experian to include rental payments in credit reports
Experian is to include consumers’ rental payment history in credit reports for the first time.
The firm is launching Rental Exchange, which it says will strengthen tenants’ credit rating by taking into account their rental payment history with their permission.
Paul Vescovi, UK & Ireland managing director at Experian Credit Services, says: “With several million people living in privately rented accommodation, a significant percentage of the population could be missing out on mainstream, low-cost credit because lenders do not currently have a comprehensive picture of their financial track record.”
Sian Williams, head of Transact, the National Forum for Financial Inclusion, says the move is a very welcome development for those living in private rented accommodation who have until now found it difficult to build a credit history.
She says: “If used well, this could be a very effective tool for allowing them to access a wider range of services at a more affordable cost.
“Key to its success will be ensuring that consumers are well educated about the service. This will include making clear the impact that missing a rental payment could have on their credit rating, especially if it is paid via housing benefit, which is often out of their hands.”